The Draghi Report highlighted the way the EU economy is falling badly behind the US this century. Sky high energy taxes and prices, and an anti high tec company set of law codes and taxes have kept the EU in the slow lane. US GDP per head is growing faster and is now 80% higher than the EU. The UK has been dragged down by EU laws and taxes, and has only grown a little faster than the EU since Brexit owing to its failure to change suffocating EU rules and charges.It has managed to avoid some of the latest unhelpful laws of the EU but is stupidly putting itself into the carbon taxes, emissions trading and carbon based tariff schemes which help make energy so dear.
A study by the European Centre for international political economy in 2023 set out how US GDP per head 47 % higher than EU in 2010 surged to 82% higher by 2023 based on cheaper energy and better technology.It showed how the major economies of Germany, France, Italy and Spain were falling further down the league table compared to US states. It is getting worse as the US accelerates its highly successful data centre and A I investments. The EU is becoming a digital colony of the US whilst protesting and seeking to constrain and tax the US companies it relies on for so many purposes.
The story of this century shows UK voters were right to vote to leave the damaging EU which has been holding down growth and living standards. This government’s wish to bind us closer to a failing economic model is bad economics and worse politics. We need much cheaper energy and we need to liberate our tec sector.No to cbam, no to EU emissions trading, no to EU net zero madness, no to the digital tax, no to more tariffs on non EU imports, no to energy dependence on EU imports, no to the big fish give away to the EU.
August 3, 2026
You know that, we know that but our masters in Westminster see the EU as sime sort of Nirvana.
India has recently pulled out of hosting the next COP summit and has denounced the whole Net Stupid tarragon. They will no doubt overtake Europe very soon.
It beggars beliefs that our so called betters cannot see the repressive nature of the EU.
The next big problem is going to be mass immigration from the Maghreb driving down living standards and increasing welfare.
August 3, 2026
@Ian Wragg – ‘beggars beliefs that our so called better’ not at all they all personally want their place in the cocooned Utopia of Europe’s rulers
August 3, 2026
I’ve not tried net stupid tarragon. Is it suitable for all the standard recipes?
August 3, 2026
The US seeks to free up innovation whereas the EU’s first instinct is to regulate and constrain.
Not for protection but for control.
Gas and electricity prices, already high in the EU, is prohibitive in the UK.
Not helpful.
August 3, 2026
@Narrow Shoulders – many years ago Elon Musk highlighted the difference between the EU (that included the UK). In that everything in the EU is illegal unless it has been made legal by the unelected unaccountable. In the ‘free world’ everything is legal unless it has through the democratic process has been made illegal, even then in a democracy, laws can be amended and repealed.
That was the way it was in the UK until the UK Parliament became subservient to the unelected unaccountable EU Bureaucrats. In the EU and the UK democracy has no place in its Laws
Napoleonic law vs ‘Common Law’
August 3, 2026
+1
This is the reason why I voted LEAVE. We were, and are, a square pet trying to be shoved in a round hole.
August 3, 2026
@Mark B – we saw how they, the EU Bureaucrats work when the Irish Republic voted in their referendum to remain outside of the EU. They, the Irish people were ‘told’ that was the wrong answer go back and vote again until you get the right answer. Then again the UK Parliament refused to even ask
August 3, 2026
In short too many people working for the state sector – producing very little of value (HS2 for example poor defence procurement), or in the case of Covid “vaccines”, lockdowns and May’s net Zero, the workers rights act and Tenants rights act, things clearly of negative value. All sucking the life and money out of the productive sector. A doom loop economy made even worse by vast, net cost, low skilled immigration, high crime levels, DEI, no deterrent and misdirected two tier justice and policing.
CBAM stands for Carbon Border Adjustment Mechanism.
August 3, 2026
CBAM Covered Sectors
Cement, Iron and steel, Aluminium, Fertilisers, Electricity, Hydrogen
August 3, 2026
Good morning.
The EU has many problems but the central one is the EURO. Having a common currency like the US Dollar or Sterling where transfers from richer parts can be made to poorer parts is an advantage. The EU deals with any disparity through subsidies raised from richer member states and fines. This form of wealth transfer when properly spent delivers you a Poland whereas, monies that are spent either unwisely, as in the case of Spain, or corruptly (EU wide) delivers little to no growth at all.
The EURO is not a complete project. For it to work all member states have to use it and, all fiscal control is managed by the EU, including taxes. This the richer states like Germany will not allow. So they are stuck.
August 3, 2026
Mark B
“The Eu deals with disparity through subsidies..and Fines”
The Uk deals with the so called disparity of its people with a High Taxes and Benefits approach, thus crippling the strivers with ambition, self sufficiency, savers, and investors, in favour of many of those who simply cannot be bothered.
A disaster policy of self harm if so called re-distribution, limiting future growth and creating a “why bother” attitude.
August 3, 2026
What the UK, and the EU are practicing, is naked Socialism. They believe in equality of outcome, not equality of opportunity. ie Everyone must come first and, those who can run fastest must be handicapped in order to stop them winning outright.
August 3, 2026
Burnham the other day suggested the “more safe and legal routes will disrupt the people traffickers business model”. Is he really so moronic he actually believes this drivel? How will taking a few thousand more by legal routes disrupt the many millions who want to come to the UK illegally when most would never qualify for legal routes anyway? It will just means even more net cost migrants.
August 3, 2026
Burnham will talk tough when he has to. Like his predecessors there will be no effective actions on the issue. He is gambling on there not being violent disorder in the country. So far there hasn’t been.
On the economy, he is also gambling that older people and the better off, who are affected by tax rises, will just put up with it. These are a different sector to those who turn out for protests against illegal migrants. There is some overlap between the two groups but they are different.
August 3, 2026
Safe and legal routes is the way to go. Set up an office in Calais where anyone who wants to claim asylum in the UK has to register. If they cross the channel without permission their asylum claim is void and they are put in a secure detention centre awaiting removal.
How long do you think they will fester in Calais waiting for the UK government to approve their claim? More likely they will give up and go home first.
All claims must be supported by a guarantor who will assume responsibility for looking after the migrant and paying costs if they go missing or offend. A deposit of £0.5million should be about right.
August 3, 2026
But the Tories/Mrs Badenoch have not, should they take office, undertaken to undo Labour’s new EU commitments. Ms Coutinho is talking sense on Net Zero but was a firm advocate of it when working in the Sunak government.
People don’t believe what such politicians say. Where is the hope? The likelihood is another low turnout at the next general election resulting in further entrenchment of these damaging policies by a Left oriented administration.
Reply The Conservatives oppose the EU re set and will publish a policy on how to restore our powers when we know how much they have given away and how it has been given away. There are clear energy policies to stop the current net zero self harm
August 3, 2026
The dreadful Nigel Farage, fresh from the latest Reform electoral failure at the Manchester mayoral election, has – laughably – declared that a “Reform government” would use the Royal Navy to “detain and send back” the boat people in the Channel
Yet again, Farage demonstrates his complete ignorance of the realities facing the RN. There are not enough serviceable ships to intercept Russian vessels running the Channel, let alone the wily and very wealthy people smugglers.
How curious that the French gendarmes are always looking the other way when the rubber boats are being launched
August 3, 2026
SG
Who can blame the French really, they get rid of the people in the Country they do not want, and get well paid at the same time for just going through the motions, looking on, and/or turning a blind eye.
The UK government are the fools for allowing and funding it.
Problem is it is the UK taxpayer who funds this fiasco, and the on going cost when they arrive here, as well as the cost of any legal help to stay, and the eventual expulsions.
The illegals are taking a ride, and we are being taken for a ride by paying for it all.
August 3, 2026
And your solution is ?
August 3, 2026
The French gendarmes are effectively ensuring that we take our share of migrants admitted into the EU, as the other countries do. In this respect, as in others, we never really left the EU.
For info, the middle part of the Channel is international waters. We have no right to ‘intercept ‘other vessels using it, any more than France or Belgium has. I would have thought you lot at 77th Brigade would know that.
August 3, 2026
To be fair, they aren’t proposing using type 45 destroyers for this purpose, just appropriate for the application (RHIBs).
To be less fair, the idea sounds like a gimmick. I expect in time to come any naval personnel involved in the operation will be tried for human rights abuses and “we were just following orders” won’t be acceptable.
See my reply to LL above for my solution to the boats problem.
August 3, 2026
SG. You don’t need ships to intercept the boats, just a few high speed RIBs. Crewed by a few volunteers who get paid on results. Towing them back to mid Channel will soon stop them.
Your hatred for Farage masks the fact that Reform became the opposition getting a hefty portion of the vote. Despite relentless attacks from both the right and left-wing press, they continue to be holding steady in the polls. The Cueta invasion is a gift to Reform as the Messiah has no intention of addressing it.
August 3, 2026
The curious thing is voters are not saying ‘no’ to those things. 50% or so of them say they support left wing parties which most certainly want to say ‘yes’ to all those EU integration measures, and more. The only possibility of a renewed free market / low tax redirection in the UK is a unification of the right. We need, at least informally, a sophisticated tactical voting programme so those people who don’t want more and more socialism know what to vote where, in order to get rid of it.
August 3, 2026
Richard. Don’t you think that’s the plan. Complete destruction of all industries to enable the reat reset
August 3, 2026
The Latin-speaking civil serpents running the Ministry of Defence have decided that the best way to save money is to make about 150 military base caretakers redundant. They have launched a four-week consultation on plans to remove 125 caretaker roles across England, Scotland, Wales and Northern Ireland, covering the Army Reserve and University Officers’ Training Corps estate
About 90% of those affected currently live in tied accommodation, meaning many loyal and long-serving staff would be forced to leave homes they have lived in for years as a direct result of redundancy.
The MoD employs about 55,500 civil servants at a time when we have only 74,000 British Army soldiers. This means that for every 1 full-time civil servant, there are approximately 1.33 regular army soldiers (or roughly 3 civil servants for every 4 regular soldiers).
Time for the new SoS Defence Wes Streeting to identify the civil servants responsible for this redundancy proposal and sack them instead
August 3, 2026
SG : “The MoD employs about 55,500 civil servants at a time when we have only 74,000 British Army soldiers.”
SG, there’s a lot of work to be done to decarbonise our armed forces.
August 3, 2026
Rather incredibly given the current climate UK is a world leader in AI technology and investment (behind only USA and China) and in gene editing for example for agricultural and medical innovations. Both these areas would be killed stone dead by aligning with EU laws which explicitly restrict those two areas. I expect Labour’s EU reset will do exactly that.
August 3, 2026
@Roy Grainger – which is why the big names are actually based in London, succeeding in spite of a UK Parliaments fight against them.
I would guess and it is a guess it was the UK University system that created the Chinese AI. That guess is based on the recent news “Queen Mary University of London, is partnered with a university in Beijing that develops top-secret underwater capabilities for the People’s Liberation Army.” In essence the UK Taxpayer is involved in funding People’s Liberation Army to defend and neutralise UK and US Submarines(they are intertwined)
August 3, 2026
Yes I agree 100%
August 3, 2026
Japan’s public debt towers over 200% of GDP, making it the highest in the G20. To prevent the crippling costs of servicing this colossal burden, the Bank of Japan has been forced to artificially suppress domestic interest rates. This extreme policy divergence against high global interest rates triggered a continuous, multi-year slide in the yen, plunging the currency to 40-year lows.
This critical economic situation prompted a historic, rare intervention by the US Treasury Department to directly purchase yen (for the first time in 30 years) alongside Tokyo to stabilize the market. Washington stepped in because an unmitigated currency collapse would force Japan – the largest foreign holder of US debt – to aggressively dump its vast reserves of US Treasuries to independently raise dollar liquidity. Preventing such a destabilising sell-off protects the American economy from a dangerous spike in its own borrowing costs
Japan’s holdings of US Treasury debt equal roughly 26% of its own GDP, with total investments sitting at $1.14 trillion. Simultaneously, total US public debt stands at roughly 124% of US GDP, or approximately $40 trillion.
It looks like this might be the beginning of the end for governments that routinely borrow money to pay the interest on their sovereign debts
August 3, 2026
@SK – Japan as with the USA earns money lots of money through World Trade, its debts are used to finance investment to ‘earn’ – so both can service debts without blinking. This Socialist driven UK cancels first, then taxes more, then borrows even more without a single clue were the money is to come from.
Burnham and his new Mayor of Manchester who got the support of just 12.5% of the electorate think the answer to the UK’s problems is to return to the 70’s, a time neither of them experienced, they believe in their own personal socialist dogma. While the rest of the World progresses, creates wealth and improves lives of their people
August 3, 2026
The social mix was entirely different in the 70,s . Growth isn’t an objective entity thus depending on it’s citizens and their beliefs or disbeliefs.
We do not follow the 70’s socially and we need to readjust our collective mindset to even think about growth.
My daughter remarked how different society is today with many sporting higher class new cars , without money in the system , basic manners and cleanliness. There again there is much greed and jealousy,negative competition and alas a loss of Britishness.
August 3, 2026
That’s Socialism for you drag and keeping dragging everyone future down to the lowest common demonstrator. How else do you gain control and dominate?
August 3, 2026
The UK’s Socialist terrorist, its socialist Parliament propped up by a socialist media just doesn’t ‘get it’. The USA is not some wayward school child that isn’t in favour of the environment, they do more practical things that actually make a difference without the song and dance of personal political ego getting in the way. Above all to change structures etc they know it cost money, hard earned money. So they don’t cancel things before there is a cost effective reliable alternative. they don’t cancel the means to earn for personal political pleasure. That means unlike the UK and its personal ego drive Parliament there is earned money coming in to fund a future, earned money to advance and improve things for all.
In the UK it is all about the satisfying of personal ideological well being of the Political Class. Its another reason the UK Parliament doesn’t do democracy, doesn’t seek validation, Parliament insulates itself to focus on the fight against the people and the country. Parliament seeks maximum destruction, irreversible destruction for personal ego.
August 3, 2026
In the last century, when we lived in Singapore, its GDP per capita was $813. At that time, the UK figure was $2100, effectively two and a half times that of Singapore.
Today, Singapore is at the top of the world in PPP terms at $173,708 per head, whereas we, the UK, are at a distant $67,585. Singapore’s GDP is now two and a half times ours. Hmmm.
So, what is conservative Singapore doing right and little lefty GB doing wrong? Do socialist policies kill growth, I wonder?
August 3, 2026
Perhaps the Frenchman in his gite doesn’t want the frenetic rat race, but to enjoy an easier life with a glass of Beaujolais at the end of the working day.
The problem is the governments that want to spend as if they had a vibrant economy.
August 3, 2026
cheaper energy and better technology aare not the ojl factors driving US GDP per capita. Over generous welfare and low grade large scale immigration are also dragging down European and UK economies and perhaps above all, is the cultural differences: in the US the state is kept small, people expect to have to work and want to work to provide for themselves and their familes, in Europe and especially in Britain, too many see no point in working and, perhaps a majority expect state subsidy and support for a great part of their lives. the state is the first port of call when there is difficulty ahead.
August 3, 2026
“America is the only country that went from barbarism to decadence without civilization in between.” – Oscar Wilde.
One big thing we can borrow from USA is to recreate a second Silicon Valley here in the UK within the triangle of Cambridge, Oxford and London. But even here, Cambridge, Oxford and London are all old/ancient and contributing hugely to our economy, education, science and culture over the ages.
August 3, 2026
And the gap is increasing
“Energy Secretary Miatta Fahnbulleh on the Today programme, asked if Labour’s Net Zero policies cause people’s bills to rise:
“Well look, I don’t accept that”
The quality of the UK’s Parliament writ large, the UK’s energy prices are up to 400% higher than its competitors because of Parliament imposed costs, subsidies and give away to foreign nationalise industry. Not is it higher because of Parliament this is UK Money being exported to pay these higher rates
“Pressed on whether the government would permit new licences for oil and gas drilling in the North Sea, she added “our manifesto is clear on new licences“. Meaning ‘no’…?
August 3, 2026
This was predicted by that anti-Brexit zealot Michel Barnier a few years back when he spoke with unusual honesty about the future of the EU. The theme of this was that the EU would become “economically irrelevant / falling behind more productive states”.
An obvious truth to those that see the effects of so much inward looking legislation that served little purpose but to restrain. Leaning ever deeper into socialism and direct rule from the commission and it’s bureaucracy.
The EU is on a downward spiral, and if we allow ourselves to be shackled to it we will as a country die a most painful death.
Never mind a war with Russia – unless we do something amazing in the next few years the EU effect or just plain old socialism will be the end of us.
August 3, 2026
Late last year, Deutsche Bank suggested that, without the AI bubble, the US economy would already be in recession. Earlier this year, Goldman Sachs claimed that “that AI is producing little measurable economic benefit” in the USA.
Meanwhile, AI stocks are trading at P/E levels that are certainly not justified by current revenue levels and the capital expenditures being undertaken, often with circular funding (large tech companies are investing in startups who are then using that money to buy services from the companies that invested in them).
Meanwhile that is creating a real shortage of IT systems components (RAM, disk drives), pushing up prices and therefore hitting costs in the rest of the economy and squeezing profits in those companies.
Even Sam Altman has stated that we are in a bubble. What will be the state of the US economy when the bubble bursts (as all bubbles do)?
August 3, 2026
John, as you well know, the people you send your diary thought to every day are on your wavelength when it comes to the EU. The difficulty we have is the vast majority of the establishment including at least half of the Tory MPs in Westminster hold a different view.
That disconnect between the Tory Party in Westminster and the Tory members in the country is why the last election went the way it did.
We need to have more well respected persons from the Tory party and in the establishment generally coming out and speaking the uncomfortable truth about the EU we all see in the economic figures.
The EU is a bad option. It has shown its negative impact on the UKs standing and economic strength from the moment we joined in 1972 through to today, despite having left their direct control ten years back.
It is time we implemented the vote to leave the EU and stop pandering to the insanities of those in the failed remain sector of society.
We need to demonstrate our National sovereignty and show we are an independent Country beholden to no other.
Reply conservative MPs today are committed to brexit and support leaving the ECHR
August 3, 2026
What? all of them? that is certainly a revelation. Let us hope it remains so.
August 3, 2026
If the rump of the Conservative Party in Parliament was truly in favour of Brexit, they would surely be clamouring to work with Reform to win the next election. I fear that, as in Manchester, they will be all but wiped out at the next election, and Burnham will continue in office with that nightmare coalition of the left we can all see on the horizon.
REPLY The Conservative Parliamentary party is strongly pro Brexit and is drawing up an agenda for government. Reform has made quite clear it seeks the destruction of the Conservative party and has said no Conservatives can join Reform after May 2026. It supports nationalisation of steel and water without explaining how to pay for this. It supported the abolition of the two child cap on benefits before changing its mind. It supports proportional representation. it has no wish to do a deal with the Conservatives.
August 3, 2026
The reason for the growing gap is of course EU membership, mass immigration, the fiasco handling of covid and most of all the Cnut-like delusion that burning fossil fuels is causing a climate crisis. All policies of the Uniparty. According to Professor Gordon Hughes of the renewable Energy Foundation, we have already spent £220bn (2024 prices) on Net Zero and we are currently funding £26bn/year in subsidies. In addition NESO say their Clean Power 2030 project will cost “over £40bn annually”. Net Zero by 2050 was made the law by PM May and The Strategy to achieve it turbocharged by PM Johnson and hence our energy policy is now in the hands of activists and judges. Nothing can be done to change our course without a complete change of Parliament. There would be no climate crisis if the “solution”, Net Zero, wasn’t sabotaging our energy and consequently destroying our industry, economy and national security.
August 3, 2026
Surely the gap between the US and UK economies has to do with the Governments of both countries? The US has lower taxes and less government interference with business. Here we have had ignorant socialism for the last 30 years from all parties, much worse now under Labour. Our new PM talks a good fight, but when it needs really tough decisions I guarantee he will run a mile. So we have potentially three more years of drift, of tinkering around the edges and not tackling the real problems.
When you are borrowing money to pay the interest on your debts, you are in real trouble! 30 years of spend, spend, spend and our MPs will be totally surprised when it comes crashiong down to the end!
August 3, 2026
We are led by politicians, quangos,media and tertiary education sector that believe in degrowth.
August 3, 2026
Since it is obvious that alignment with the EU will not benefit the economy or ‘lower food prices in the supermarkets’ which is the government’s latest obsession (as if we didn’t know that the real causes of inflation are the direct result of government policy) then the attempt to rejoin the EU must have some other motive.
I suggest the real reason is Labour’s desire to dominate the next and subsequent elections, by enlisting the political support of the EU for whatever constitutional changes Labour will push through with its unearned parliamentary majority, aimed at another pseudo-win, if necessary building a coalition with the Greens, LibDems and the left wing of the Conservatives, to ‘keep Reform out’.